Grand City Properties S.A. Credit Rating Downgraded by S&P

Grand City Properties S.A. has announced that Standard & Poor's (S&P) has downgraded its credit rating to BBB with a stable outlook. This decision aligns with the recent revision of Aroundtown’s credit rating. Consequently, the credit rating of the company's bonds and perpetual notes have also been reduced.

This downgrade follows increased economic uncertainties and the slowed deleveraging progress of Aroundtown. Nevertheless, S&P expects Grand City Properties to maintain solid operational performance, driven by positive fundamentals in the residential real estate markets of Germany and London.

Despite the downgrade, Grand City Properties has demonstrated proactive measures in managing its leverage, such as dividend suspension and disposal activities, leading to a reduction in its debt-to-equity ratio. The company maintains a conservative financial profile with strong liquidity and robust credit metrics, reflected in its loan-to-value ratio and interest coverage ratio.